Morgan Stanley Upgrades Ford (F) to Overweight

(Updated - August 6, 2019 7:45 AM EDT)

(updated to add analyst comments)

Morgan Stanley analyst Adam Jonas upgraded Ford (NYSE: F) from Equalweight to Overweight with a price target of $12.00 (from $10.00) on the back of a significant increase in their 2020-2022 earnings estimates. The analyst cited three main factors for the upgrade.

1. restructuring actions (particularly in Europe)
2. strategic actions (VW partnership, deconsolidation of Mobility, emerging EV plan); and
3. product mix enhancement (new utilities, new F-150, exiting cars).

"We view the reset of FY19 expectations following 2Q results and a 3-month low in the shares as a buying opportunity," he said.

The firm's previous outlook for Ford EPS called for nearly a 40% drop in earnings through 2022 (to $0.75 in FY22 from $1.20 in FY19) and did not include incremental restructuring savings. Their new earnings forecast is for a largely stable level of profitability (at around $1.20 to $1.30) through the 2022 time horizon.

For an analyst ratings summary and ratings history on Ford click here. For more ratings news on Ford click here.

Shares of Ford closed at $9.17 yesterday.

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